GTEC Holdings is a company that came onto our radar a little while ago when they were raising Pre-IPO funds for their company .
They recently completed that non-brokered Private Placement financing for ~$11.5M for ~19M shares (@ $0.60 with a 1/2 warrant at $1.20 expiring in 3 years). Proceeds will go towards closing previously announced LOI’s and funding various construction projects.
The company was formed in early 2017 and formed by the team behind Doventi Capital. The Management team has a solid track records of building successful cannabis companies and listing public companies.
They have brought in a solid advisory team, with Paul Rosen (Co-Founder of MJN.V) and Dan Kriznic (CEO of IMH).
GTEC has also built out an experienced operations team to manage all of their cannabis holdings day to day operations.
GreenTec Bio-Pharma Corp. (100% Ownership)
BC based ACMPR Late Stage Applicant
- Currently constructing their 80,000 square foot (owned land) facility in Kelowna
- 10,000 kg annual capacity
- Plans to expand into a 2nd site (160 acres) in the North Okanagan,
- Plans to expand into a 3rd site (35 acres) in Revelstoke, BC.
GreenTec Future Expansion’s
- 7,000,000 sq ft. (Leased with right of first refusal) in BC for a future facility
- 60,000 sq ft indoor buildout
- Natural sunlight for potential greenhouse expansion
- 1,500,000 sq ft. (Option to acquire) & potential for retail in Major BC tourism area
- 13,000,000 sq ft. secured in BC for a future facility (Accepted offer to purchase real
estate, expected to close June 2018)
CraftCo. (100% Ownership)
Confidential Location – Cultivation LP
- 14,000 sq ft facility – producing 1,300 Kg
- Currently submitting secondary site application to Health Canada for expansion)
Falcon Ridge Farms (100% Ownership)
Kelowna BC – ACMPR Late Stage Applicant
- 10,000 sq ft facility – 1,000 kg production capabilities
- Expansion capabilities to 11 acres
- Existing site is Organic certified Farm producing Echinacea
- Leased land with right of first refusal
Tumbleweed Farms (100% Ownership)
Chase BC – ACMPR Late Stage Applicant
- 10,000 sq ft facility – production capacity of 1,000 Kg
- Expansion to 1,000,000 sq ft with option to go to 8,000,000 sq ft
- Owned Real Estate.
Grey Bruce Farms (100% Ownership)
Kincardine ON – ACMPR Late Stage Applicant
- 30,000 sq ft facility – production capacity of 1,500 Kg Boutique Craft Cannabis
- Expansion capabilities to 500,000 sq ft.
- Option to acquire land
Zen Labs (100% Ownership)
Kelowna BC – Pending Narcotics Dealer’s License
- Currently a fully operating environmental and microbial analytical testing lab.
- Analytical laboratory awaiting completion of renovations and upgrading certain analytical instruments for Narcotics Dealers Licence.
- Will be applying for extraction licence to produce and refine GTEC products
Las Vegas and Washington St
- Nevada – Convertible Debt Option to acquire 80% stake in Cultivation facility
- 2,500 kg annually with expansion capabilities
- Phase 1 built out and operational
- All state and municipal licenses and approvals received
- Distribution license granted
Partnerships with extraction / processing facility next door
- Washington State – Option to acquire 20% stake in Cultivation & extraction facility
- 3,500 kg annually with expansion capabilities
- Fully built out and operational
- All state and municipal licenses recieved
Revenues Projections Aug 2018 – Aug 2019
(as per their Presentation Deck)
- GreenTec Bio-Pharmaceuticals Corp Ph1= $12M CAD [1500 kg x $8,000 per]
- CraftCo Acquisition Target $10.4M CAD [1300 kg x $8,000 per]
- TumbleWeed Farms = $6.6M CAD[1100 kg x $6,000 per]
- Grey Bruce Farms = $9M CAD[1500 kg x $5,000 per]
- Falcon Ridge Farms = $10M CAD [1000 kg x $10,000 per]
- Zen Laboratories = $2M CAD
- GreenTec expansions (early stage operational)
By 2020 they aim to be producing 50,000 Kg per year
10M – Founders shares (escrowed for 36 months)
23M – Seed round financing ($0.20) for $4.6M
5.0M – Shares for Acquisition ($0.50)
19M – Pre-IPO ($0.60) for $11.5M
57M – Shares outstanding
9.0M – Warrants Seed Round ($1.20 for 3 yr w/ 6 month hold)
9.8M – Warrants Pre-IPO round ($1.20 for 3 yr w/ 6 month hold)
18.8M – Warrants Outstanding